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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Ann Green-Barton, Chief People Officer |
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PRESENTER(S): |
Ann Green-Barton, Chief People Officer |
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JD Tazoi Director of Total Rewards |
TITLE:
title
Contract: Employee Paid Supplemental Insurance Plan (Voya Financial, Inc.)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve and authorize the Executive Director to execute the agreement and associated disbursements with VOYA Financial, Inc (Voya). for supplemental insurance plan coverages for the benefits plan year beginning May 1, 2026, ending April 30, 2027.
BACKGROUND:
UTA offers its employees the choice to elect supplemental Group Accident, Hospital Indemnity, and Critical Illness insurance coverages through Voya Financial, Inc. These coverages were identified as valuable benefit offerings by UTA’s benefit consultant group, GBS Benefits, Inc (GBS). While the coverages are funded primarily through employee payroll deductions, UTA has consistently recognized that a small residual liability may exist at the end of each plan year due to timing and collection differences because employee contributions are collected biweekly and premiums are billed and paid monthly. The difference is modest and has been approximately $10K-15K per year. The Voya benefit plans are evaluated yearly through the annual benefit renewal process.
DISCUSSION:
GBS is an approved and procured contractor for benefit consulting services for UTA. GBS has once again recommended Voya for UTA’s 2026-2027 plan year supplemental insurance provider. UTA is asking the Board to authorize the Executive Director to sign the non-procurement agreement to continue these benefit offerings for the benefits plan year beginning May 1, 2026, through April 30, 2027.
CONTRACT SUMMARY:
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Contractor Name: |
Voya Financial, Inc. |
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Contract Number: |
#26-P00553 |
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Base Contract Effective Dates: |
May 1, 2026 through April 30, 2027 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
$0 |
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Amendment Amount: |
$0 |
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New/Total Contract Value: |
$864,000 |
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Procurement Method: |
N/A |
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Budget Authority: |
2026 Operating Budget |
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ALTERNATIVES:
If this non-procurement agreement is not approved UTA would stop offering these supplemental benefit coverages.
FISCAL IMPACT:
These costs are generally funded by the employee through payroll premium deduction. The full premium costs are paid by UTA on a monthly basis after deducting from the employee’s pay.
Total cost for 2026-2027 plan year: $864,000 (estimated $72,000/month in employee paid premiums).
Account 1.20207 - Group Accident insurance premiums: $252,000 ($21,000/month in employee paid premiums)
2026: $168,000
2027: $84,000
Account 1.20207 - Critical Illness insurance premiums: $360,000 ($30,000/month in employee paid premiums)
2026: $240,000
2027: $120,000
Account 1.20209 - Hospital Indemnity insurance premiums: $252,000 ($21,000/month in employee-paid premiums)
2026: $168,000
2027: $84,000
ATTACHMENTS:
Contract